The report said North Sea oil and gas revenues slumped to £24.4billion in 2014, the lowest since 1998.

Only 14 out of 25 wells planned for 2014 were actually drilled, and only between eight and 13 are planned for 2015.

Webb said the dire outlook could mean some areas could become completely unsustainable, leaving oil and gas in the ground. He estimated the industry needs to cut costs by around 40% in order to become viable.

BP(BP) and Royal Dutch Shell(RDSA), both big producers in the region, have called on the British government to cut taxes on production to ease the pain.

Despite the plunging prices, OPEC's power players are resisting calls to cut production.